How Lending coins damage crypto?

[fib123]

It was end of 2017 around Oct-Nov, 2017. When i was start to understand about the concurrency and the importance of Blockchain. Then every where was hype about Bitcoin and Bitcoin was climbing day by day, during this time Etherium was also in race to beat everything was continuously gaining value.

This was the time of Lending coins were its peak i hope most of the people here will be familiar with these kind of coins Like:

• Bitconnect
• Davor
• Hextra

That time was the golden days for those who were entered in very beginning no doubt they earned a lot of money and may be make their best ever profit of the life. The question was, from where those competencies generating their revenue. That was the worst part of the game.

The only business to making money was referral system the influencer was trap people for a passive income without making any effort. The said story was they convince common people to invest their money in coins and let it bound for lending.

Finally those fake ICO's, Lending Project make crypto fruad technology for those who lost their hard earn money

[bgaf]

Bitconnect I think is the most worst scam project ever developed. Most got hype with this one, I remember my friends inviting me to join their league but during that time I am bit broke and luckily I didn't join them cause right now they are regretting investing on it.

I never heard the other two. But sounds like they also scammed a lot of people based on your post. Many people got lost their money with these kind of projects and we can't stop it at hand cause no authority were able to regulate these kind of launching. Good thing SEC somehow busted those other fake ICO projects that are on the run.

[fib123]

Bitconnect I think is the most worst scam project ever developed. Most got hype with this one, I remember my friends inviting me to join their league but during that time I am bit broke and luckily I didn't join them cause right now they are regretting investing on it.

I never heard the other two. But sounds like they also scammed a lot of people based on your post. Many people got lost their money with these kind of projects and we can't stop it at hand cause no authority were able to regulate these kind of launching. Good thing SEC somehow busted those other fake ICO projects that are on the run.

I don't know at which stage your friends were asked you for the joining, but it was your good luck to be safe from these kind of scam, at that time the only peoples can survive to stay away from such kind of looking attractive profitable schemes. The people who were be safe they must have some basic knowledge about the blockchian concept and be worry that how they are doing business and how we get paid. The other one who join crypto latter 

[Tipstar]

That was no lending. No idea about the two but bitconnect was a HYIP. Where the old investors were paid from the profit of the new ones and it was destined to scam.
Anything above 0.1% a day or a 3% per month from an institutional project could be easily called a HYIP. There's no way they can provide such return on every user deposits.

[knuckey]

If you talk about lending, then this has absolutely no effect or can damage the crypto. Because there are many crypto lending platforms today, such as salt, crypto.com, ETHLend, nexo, bitbond and many more.

So there is no relation between lending and damaging crypto and the project that you said is a scam project that has a ponzi, MLM or hyip scheme, you know right?

[Ucy]

Some of the decentralized lending platforms I know of are quite sustainable and safe (as far as I can tell). They are unique kind of lending though... with very small/no risk of default.
Those kinds of lending platforms you listed are/were probably running pyramid-like scheme combined with lending. I haven't really used any of them before though. to determine exactly what went wrong

[Reid]

A good lesson to learn with.
In this forum many users are affected by that specially BitConnect. Thank God I am not one of those, I still consider myself lucky.
But still, there is this feeling of sadness for other enthusiast of crypto currencies.
What will happen to them?
Will they stop after the big loss or will they consider this as one of their good lessons in their life.

I bet they did learn.
If they are still here, good luck into earning all those hard earned money.
Now, we could see the minimize number of ICO project but that ain't still good. Scams needs to be stopped.

[Pearls Before Swine]

• Bitconnect
• Davor
• Hextra

I've never heard of any of those except for Bitconnect, but I was never interested in lending crypto anyway.  You're right about all the hype surrounding ico's and the like, because 2017 and part of 2018 were rife with scammy projects and people throwing their money at anything in the hopes they'd make millions.  In almost all cases, that never happened.

Kucoin offers some sort of lending service that customers can participate in, and though it's piqued my interest a little bit, I'm wary of letting an exchange lend out my bitcoin.  To me it's just not worth the risk.

[inoes]

Lending crypto is safe. for example through the Di Fintech (p2p) Lending (coinworks) network of incoming funds in the form of loans, so it does not damage the crypto price because the funds are only changed in ownership. the problem is if a scam, everything is damaged

[ansi]

If landing may hurt & damage banks (fiat) themselves, how could you imagine not to DESTROY crypto ?
Landing in crypto if like giving full thin air & waiting for your interest rate (which i the interest of that thin air).

It's just total bullshit to even consider " landing " a safe niche in crypto the first place.

[Flux0z]

Some of the decentralized lending platforms I know of are quite sustainable and safe (as far as I can tell). They are unique kind of lending though... with very small/no risk of default.
Those kinds of lending platforms you listed are/were probably running pyramid-like scheme combined with lending. I haven't really used any of them before though. to determine exactly what went wrong

Please let me know which lending platforms is decentralized, and I mean completely decentralized, I'd really like to know!
Personally I'm making 16% annually staking my Blocknet, which yields me more than $100/month, which is pretty nice, at some point I plan to start a node, and accumulate DEX trading fees, and (soon) decentralized oracle fees as well, which will earn me even more in the future.

The concept of lending seems pretty nice, but I don't like the centralized aspect in most of them, needing KYC etc.

[disconnectme]

These are never a lending coin, call them their real names, Ponzi scheme or pyramid scheme. If you look through all these project, you would no how they are going to end but not when it is going to end.

The real lending coins are Nexo, Celcius etc, they have are business that they are running

[gensol]

ICOs, IEOs, STOs, IPOs all make cryptocurrency look like a fruad. Most IEOs has exit scam despite launching on exchanges which only shows some exchanges are not reliable and should not be allowed to operate. Until there's regulation or due deligence is followed, cryptocurrency will look like fraud to most people because money keeps being lost.

[adzino]

ICOs, IEOs, STOs, IPOs all make cryptocurrency look like a fruad. Most IEOs has exit scam despite launching on exchanges which only shows some exchanges are not reliable and should not be allowed to operate. Until there's regulation or due deligence is followed, cryptocurrency will look like fraud to most people because money keeps being lost.

You can most of the ICOs and similarly related activities are actually a total sham. Unfortunately people still fall for this scam. Greed is to be blamed. They see opportunities of making profit and get rich real quick through these events, but ends of being the total opposite.
Regulations? Do you really want crypto currencies to be regulated? Once they start getting regulated, they no longer will remain decentralized. People will start losing their financial freedom again sadly.

[Crypto5060]

Those projects were more like Ponzi schemes than lending coins. I don't understand lending coins to mean the exact thing. Exchanges have of recent started offering crypto lending, in all, lending isn't bad.

[pixie85]

Those projects were more like Ponzi schemes than lending coins. I don't understand lending coins to mean the exact thing. Exchanges have of recent started offering crypto lending, in all, lending isn't bad.

Right. Others have said it already. Those coins were a fraoud from the beginning and the way they operate is spend a lot of money on marketing, schilling, paid articles, conferences. They hire speakers and youtubers to look legit and persuade people to invest. Small schemes like that are running all the time but they're so small that people don't discuss them much and don't expect to win or lose much.

It's never the fault of the idea behind the coin but the team that is running it. The coin by itself will never scam you or run with your money but the people will.

[Twinkledoe]

Those projects were more like Ponzi schemes than lending coins. I don't understand lending coins to mean the exact thing. Exchanges have of recent started offering crypto lending, in all, lending isn't bad.

Right. Others have said it already. Those coins were a fraoud from the beginning and the way they operate is spend a lot of money on marketing, schilling, paid articles, conferences. They hire speakers and youtubers to look legit and persuade people to invest. Small schemes like that are running all the time but they're so small that people don't discuss them much and don't expect to win or lose much.

It's never the fault of the idea behind the coin but the team that is running it. The coin by itself will never scam you or run with your money but the people will.

What more can I say? Those projects mentioned by the OP are only few projects that turned out to be fraudulent and scammed investors. Yes, they tarnished the image of crypto but I don't think people will stop dealing with crypto because of them. There are far more benefits in having with crypto. Those are lessons learned that not every seemingly legit project has good intentions. We know that hyping up the project is really not a good sign if your intentions are authentic. We are learning day by day. That's part of crypto life but we are not stopping because of them...

[Finestream]

A legit lending blockchain platform would be a great contribution to the market, Bitcoinnect has a hidden agenda, they are a HYIP which we all know would eventually take people's money. There's always a rule when investing, you don't invest in a project that the return is too good to be true and that's HYIP are. Back in 2017, there are a lot of lending platform that was introduce to the market through ICO though they are not successful now but I believe some of them are legit and they have a potential.

[Asuspawer09]

I think it was not lending since you mention tokens or altcoins in the market for sure is are just hype in the token where people are getting hype to invest for a profit and then just going to end up having nothing in the end because of the fake ICO or scam ICOs like this is more like a victim of the scam ico project the thing is they are the main investors and investing directly for sure you would expect profit but end up getting nothing.

[chennappa121]

Bitconnect is the very big scam in crypto market until now because they stole 2.5 billion dollars from investors.

The ico also become one of the best platform to scammers to stolen investors funds.  because in 2017-2018 between those years what ico has launched that all become 90% of scam projects. and some of coins no value in crypto market now.